Take advantage of the equity in your home to give you financial flexibility.

What is a HELOC?

For most people, your home is your greatest and largest asset.  A Home Equity Line of Credit (HELOC) can help you take advantage of the equity you have in your home to give you financial flexibility.  Whether you’re looking to do home improvements, pay for college, or simply take vacation, a HELOC can be a great solution.

A HELOC is a form of revolving credit in which your home serves as collateral. Unlike a traditional loan, where you receive a lump sum upfront and repay it in fixed installments, a HELOC operates more like a credit card, offering you a line of credit that you can borrow from as needed, up to a certain limit, over a specified period—typically 10-20 years, followed by a repayment period.

How Does it Work?

When you open a HELOC, you're given access to a pool of funds based on the equity of your home, and you can borrow from this pool as needed, paying interest only on the amount you withdraw. As you repay the borrowed amount, the credit becomes available again, much like a credit card. The interest rates on HELOCs are typically variable, meaning they can fluctuate over time based on market conditions.

Benefits of a HELOC

  1. Flexibility: One of the primary advantages of a HELOC is its flexibility. Whether you're undertaking home renovations, consolidating debt, covering unexpected expenses, taking a vacation, or funding a major purchase, a HELOC provides you with quick access to funds without the need to apply for a new loan each time.
  2. Lower Interest Rates: HELOCs often come with lower interest rates compared to other forms of credit, such as credit cards or personal loans, because they're secured by your home. This can potentially save you money on interest payments, especially if you're consolidating higher-interest debt.
  3. Potential Tax Benefits: In many cases, the interest paid on a HELOC may be tax-deductible if the funds are used for home improvements. However, it's essential to consult with a tax advisor to understand the specific tax implications based on your individual circumstances.

HCU’s Flex Home Equity Line of Credit

A Flex HELOC from Heartland Credit Union is an excellent option if you’re considering a Home Equity Line of Credit. Beyond the features of a traditional HELOC, there are a few features that make a Flex HELOC even better.

  1. Flexible payments: You can choose to pay down your balance as fast as you want or take advantage of interest only payments for months when you might need to save a little money
  2. Easier access to funds: You can access funds in several different ways
    1. Transfers money from your Flex HELOC inside HCU Digital Banking
    2. Call our eBranch and have one of our representatives transfer the money for you
    3. Visit any Heartland Credit Union branch and transfer money at the teller line
  3. Borrow up to 90% of your home’s value

If you have questions about a Home Equity Line of Credit and what might be best for your particular situation, we’re here to help. Give HCU a call at 800.428.84172 and one of our Financial Service Representatives will be happy to answer any questions.

Michael Lizalde
Michael LizaldeAVP of Member Experience

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